Lemonade Auto Insurance: User Reviews and Quotes (2024)

Lemonade is an online insurance company offering car insurance coverage in several U.S. states.

Aly J. Yale
Written byAly J. Yale
Aly J. Yale
Aly J. Yale
  • National Association of Real Estate Editors member

  • Bylines include Forbes, Bankrate, and CBS News

Aly is a reporter specializing in real estate, mortgages, and personal finance. You can find her work in Hearst newspapers and numerous financial publications.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Updated November 28, 2024

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*Quotes generated for Insurify users within the last 10 days. Last updated on November 28, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 28, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on November 28, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 28, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Lemonade offers a variety of insurance products throughout the U.S. The company has standard car insurance coverage options and add-ons, though it sells these policies in only seven states.[1] Lemonade stands out for its hassle-free claims and application processes.

But Lemonade hasn’t received ratings from major industry players like AM Best and J.D. Power, and it has a very high complaint index with the National Association of Insurance Commissioners (NAIC).

Comparing car insurance quotes is the best way to find a policy that meets your needs. Here’s what you need to know about car insurance from Lemonade.

Quick Facts
  • Lemonade only sells car insurance coverage in Arizona, Illinois, Ohio, Oregon, Tennessee, Texas, and Washington.[2]

  • Add-on auto coverages from Lemonade include temporary transportation, extended glass, and roadside assistance coverage.

  • Safe driving, bundling your policies, and having an electric vehicle can earn you premium discounts from Lemonade.

How Lemonade compares to other insurance companies

Lemonade logo
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
6.0 /10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NR
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
NR
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR
Why we picked this company

Lemonade offers similar car insurance coverages to competitors, though coverage isn’t as widely available and it has fewer discounts than some other insurers.

The company doesn’t have ratings from J.D. Power and AM Best, which are standard in the industry, so it’s hard to fully compare customer and claims satisfaction to other companies. But Lemonade does have a much higher-than-average number of complaints with the NAIC for a company of its size.

Pros
  • Emergency and roadside assistance included

  • Robust discounts, including for bundling and driving EVs or hybrids

Cons
  • Limited availability

  • Much higher-than-expected rate of complaints with the NAIC

  • Our editorial team spent 350 hours developing the IQ (Insurify Quality) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1-to-5 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. We update ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: We use data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims

    • Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also considered third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.

    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the United States, as well as available discounts, to calculate an affordability score.

    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer’s transparency surrounding discounts, coverages, and claims process.

    • Availability and reach: Insurify identified the number of states in which insurers offer coverage and company size by market share to score availability and reach.

How Lemonade auto insurance works

Lemonade is an insurance company that offers car, renters, homeowners, pet, and life insurance policies. It sells and underwrites policies and handles claims and payouts. You can set up a Lemonade insurance policy online or through the company’s mobile app.

All drivers with auto coverage from Lemonade need to have the mobile app because the company uses telematics technology to price premiums, gather information for claims, and locate drivers for emergency and roadside assistance. You manage your policy and file claims through the app as well.

Unlike many other insurance companies, Lemonade’s profits don’t come from unclaimed premiums. Instead, it takes a flat fee out of every premium. It also donates a portion of leftover premiums to various charities.[3]

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Lemonade car insurance coverage options

Lemonade sells car insurance policies in these seven states: Arizona, Illinois, Ohio, Oregon, Tennessee, Texas, and Washington. You can get standard state-minimum liability insurance coverages from Lemonade, as well as a variety of other coverage options.

Here are the auto insurance coverages that Lemonade currently offers:[4]

  • illustration card https://a.storyblok.com/f/162273/x/169fdfde11/liability-coverage.svg

    Liability coverage

    Liability insurance covers the other driver’s medical expenses if you cause an accident that results in an injury.

  • illustration card https://a.storyblok.com/f/162273/150x150/d7333ddf2e/car-and-driving-96x96-orange_046-car-accident.svg

    Collision coverage

    Collision insurance can pay for damages to your vehicle and personal property if you have an accident or collide with an object.

  • illustration card https://a.storyblok.com/f/162273/x/665da91bf7/comprehensive-coverage.svg

    Comprehensive coverage

    Comprehensive insurance covers damages not caused by a collision, like flooding, fire, vandalism, and other events.

  • illustration card https://a.storyblok.com/f/162273/150x150/a69f23e05a/healthcare-and-medical-96x96-blue_045-stethoscope.svg

    Medical payments (MedPay) coverage

    MedPay covers medical expenses after an auto accident, including ambulance fees, X-rays, surgeries, funeral services, and more.

  • illustration card https://a.storyblok.com/f/162273/150x150/7e47a00c4f/car-dashboard-96x96-green_045-airbag.svg

    Personal injury protection (PIP) coverage

    Similar to MedPay, PIP covers medical expenses, but it also includes other losses like a percentage of lost wages.

  • illustration card https://a.storyblok.com/f/162273/150x150/95fa30ac35/insurify-icons-auto-orange-96x96_005-insurance.svg

    Uninsured/underinsured motorist coverage

    If you’re in an accident with an uninsured or underinsured driver, this will cover the damages. It can also kick in following a hit-and-run accident, for example.

  • illustration card https://a.storyblok.com/f/162273/150x150/e80d4ae197/car-and-driving-96x96-gold_019-car.svg

    Temporary transportation coverage

    This is an optional type of rental car coverage that can pay for a rental car if your vehicle needs repairs after an accident.

  • illustration card https://a.storyblok.com/f/162273/100x100/3220fb55f1/broken-windshield.svg

    Extended glass coverage

    Glass coverage can go toward repairing your windshield or windows if a covered incident damages them.[5]

  • illustration card https://a.storyblok.com/f/162273/100x100/9997698e9e/emergency-roadside-service.svg

    Roadside assistance coverage

    Roadside assistance coverage can help you if you need services like towing, lockout services, or flat tire replacement.

How to get a quote from Lemonade Insurance

To get a car insurance quote from Lemonade, head to the insurance company’s car insurance page, and click “Prices” at the top of the screen. You’ll then provide some personal information and go through a variety of questions about your location and ZIP code, your vehicle, how you use the car, and any drivers you want on the policy.

Once you’ve finished the process, Lemonade will give you monthly and semi-annual premium options. You can also add or remove coverages and customize your deductible and limits to see your premiums adjust accordingly.

Lemonade car insurance discounts

Lemonade offers several discounts that can save you money on your car insurance premiums:

  • Electric or hybrid car: Lemonade offers a discount for policyholders with hybrid or electric vehicles. It also covers emergency charging and damage to wall chargers.

  • Low mileage: If you don’t drive much, you can earn a discount for it. You’ll need to enable location services on the Lemonade app to qualify.

  • Bundling: If you purchase other insurance policies from Lemonade — like home, rental, pet, or term life insurance — you can earn a discount on your premiums.

  • Good driver: Safe driving habits can qualify you for discounts. Lemonade uses its mobile app to calculate this.

  • Early coverage: If you sign up for Lemonade before your coverage start date, you can also get a discount on your premium.[6]

How customers feel about Lemonade

Lemonade tends to have positive customer reviews. The company currently has 4.4 out of 5 stars on Trustpilot but only 2.08 out of 5 stars on its Better Business Bureau (BBB) profile.

The company doesn’t have many industry rankings, but it has a high number of customer complaints filed with the NAIC.

Lemonade ratings

Looking at reviews and ratings is a smart way to assess how a company does business, though Lemonade doesn’t have ratings from AM Best and J.D. Power. Learn more below.

Rating
Score
What This Means
AM BestNot ratedAM Best hasn’t rated the company
J.D. PowerNot ratedLemonade’s seven-state footprint is likely too small for J.D. Power to include it in rankings
NAIC Complaint Index3.92Lemonade has a higher share of total complaints than expected for a company of its size

Other options for Lemonade customers

Lemonade offers several other types of insurance coverage, and purchasing one of these policies could qualify you for a bundling discount on your premiums.

Lemonade currently offers the following financial products in addition to car insurance:

  • Pet insurance: Lemonade pet insurance is a type of insurance that can cover veterinary services for dogs and cats.

  • Life insurance: These policies provide compensation to your loved ones if you pass away.

  • Homeowners insurance: Lemonade homeowners insurance policies cover property damage to your house or condo and the belongings within it. They also include liability coverage.

  • Renters insurance: Lemonade renters insurance policies protect your belongings (like furniture or musical instruments) against theft and damage while you live in a rental property.

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How to file a claim with Lemonade

To file an insurance claim with Lemonade, you’ll need to use the insurance company’s mobile app. The company advertises a hassle-free claims process.

Here’s what that process looks like:

  1. Tap the “File a Claim” button in the app. The tool will guide you through the whole process.

  2. Record and submit a video. Detail the accident, theft, or other event that you’re filing a claim for. Make sure you note the resulting damages or injuries.

  3. Await approval. Lemonade’s AI will instantly approve some claims. If your claim doesn’t have instant approval, a human claims representative will process the claim.

If your claim goes to a human representative, they may contact you for more information. Once Lemonade approves your claim, you’ll receive your payment.

Lemonade insurance FAQs

The following information can help you learn about Lemonade. A number of factors will determine whether Lemonade or another insurer is the best for your coverage needs.

  • Is Lemonade legitimate?

    Yes. Lemonade is a legitimate insurance company that sells car, renters, homeowners, pet, and life insurance. It has licenses to underwrite and issue insurance and doesn’t have links to any fraudulent practices.

  • Is Lemonade good at paying claims?

    Lemonade Insurance Company has high customer ratings on Trustpilot, with a star rating of 4.4 out of 5. But the company has a much higher NAIC Complaint Index than average, which reflects a large number of customer complaints. Lemonade doesn’t have ratings from AM Best or J.D. Power, so it’s harder to assess financial strength and customer satisfaction.

  • How do you contact Lemonade customer service?

    The best way to contact Lemonade is to use the mobile app or log in online. If you’re unable to use Lemonade’s website or app, you can also call 1 (844) 733-8666 or email [email protected] for claim-related concerns.

  • How do you cancel your Lemonade insurance policy?

    You can cancel your Lemonade insurance policy through the Lemonade mobile app. You should also receive a refund for the remaining policy period. Before you cancel your coverage, it’s a good idea to sign up for a new policy that begins before your old policy ends to avoid a lapse in coverage.

Sources

  1. Lemonade. "What Does Car Insurance Cover?."
  2. Lemonade. "United States."
  3. Lemonade. "About Lemonade."
  4. Lemonade. "A new kind of car insurance."
  5. Insurance Information Institute. "Auto insurance basics—understanding your coverage."
  6. Lemonade. "How to Lower Car Insurance Rates and Premiums."
Aly J. Yale
Aly J. Yale

Aly J. Yale is a freelance writer and reporter covering real estate, mortgages, and personal finance. Her work has been published in Forbes, Business Insider, Money, CBS News, US News & World Report, and The Miami Herald. She has a bachelor’s degree in radio-TV-film and news-editorial journalism from the Bob Schieffer College of Communication at TCU and is a member of the National Association of Real Estate Editors.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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